Registers of Deeds Supplemental Pension Fund Principal Results of Actuarial Valuation as of December 31, 2015

Transcription

1 Principal Results of Actuarial Valuation as of December 31, 2015 Board of Trustees Meeting Larry Langer and Mike Ribble October 27, 2016

2 Principal Results of December 31, 2015 Valuation Valuation Results as of 12/31/ /31/2014 Active Members Number Reported Compensation $ 6,343,941 $ 5,842,163 Valuation Compensation** $ 6,586,044 $ 6,467,323 Retired Members and Survivors of Deceased Members Currently Receiving Benefits Number Annual Allowances $ 1,726,650 $ 1,707,552 Assets Actuarial Value (AVA) $ 48,302,937 $ 48,078,302 Market Value $ 46,975,034 $ 47,814,953 Actuarial Accrued Liability (AAL) $ 30,980,364 $ 23,745,153 Unfunded Accrued Liability (AAL-AVA) $ (17,322,573) $ (24,333,149) Funded Ratio (AVA/AAL)*** 155.9% 202.5% ** Reported compensation adjusted to reflect the assumed rate of pay increase prior to the valuation date. *** The Funded Ratio on a market value of assets basis is 151.6% at December 31,

3 Principal Results of December 31, 2015 Valuation Contributions for Fiscal Year Ending 6/30/2018 6/30/2017 Actuarially Determined Employer Contribution: Normal Cost $ 914,794 $ 634,379 Accrued Liability (914,794) (634,379) Total $ 0 $ 0 Liquidation Period N/A* N/A* * If the actuarially determined employer contribution (ADEC) is based on 30 year amortization of the unfunded accrued liability, the ADEC is less than $0, which is not a permissible result. Therefore, the accrued liability contribution has been set such that the total employer ADEC equals $0. Note: Actual contributions to support the Fund are equal to 1.5% of the monthly receipts collected pursuant to Article 1 of Chapter 161 of the General Statutes (about $811,000 for calendar year 2015). 2

4 Certification The assumptions, methods, and plan provisions used in the results presented in this presentation were provided in October 2016 in the Report on the Annual Valuation of the Registers of Deeds Supplemental Pension Fund prepared as of December 31, The results were prepared under the direction of Michael Ribble and Larry Langer who meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. These results have been prepared in accordance with all applicable Actuarial Standards of Practice, and we are available to answer questions about them. Future actuarial measurements may differ significantly from current measurements due to plan experience differing from that anticipated by the economic and demographic assumptions, increases or decreases expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions or applicable law. Michael A. Ribble, FSA, EA, MAAA Principal, Consulting Actuary Larry Langer, ASA, EA, MAAA Principal, Consulting Actuary 3

5 Questions? THANK YOU 4

6 Registers of Deeds Supplemental Pension Fund Report on the Annual Valuation Prepared as of December 31, 2015 October 2016

7 2015 Xerox Corporation and Buck Consultants, LLC. All rights reserved. Xerox and Xerox and Design are trademarks of Xerox Corporation in the United States and/or other countries. Buck Consultants is a registered trademark of Buck Consultants, LLC in the United States and/or other countries. Other company trademarks are also acknowledged.

8 Buck Consultants, LLC A Xerox Company Quorum Drive Suite 200 Dallas, TX October 12, 2016 Board of Trustees North Carolina Local Governmental Employees' Retirement System 3200 Atlantic Avenue Raleigh, NC P: F: Members of the Board: We submit herewith our report on the actuarial valuation of the Registers of Deeds Supplemental Pension Fund (referred to as the Fund ), prepared as of December 31, The report has been prepared in accordance with North Carolina General Statute The primary purpose of the valuation report is to determine the required member and employer contribution rates, to describe the current financial condition of the Fund, and to analyze changes in such condition. In addition, the report provides information that the Office of the State Controller (OSC) requires for its Comprehensive Annual Financial Report (CAFR) and it summarizes census data. Use of this report for any other purposes or by anyone other than OSC and its auditors may not be appropriate and may result in mistaken conclusions because of failure to understand applicable assumptions, methods, or inapplicability of the report for that purpose. The attached pages should not be provided without a copy of this cover letter. Because of the risk of misinterpretation or actuarial results, you should ask Buck to review any statement you wish to make on the results contained in this report. Buck will not accept any liability for any such statement made without prior review. The valuation is based upon membership data and financial information as furnished by the Retirement Systems Division and the Financial Operations Division and as summarized in this report. Although reviewed for reasonableness and consistency with the prior valuation, these elements have not been audited by Buck and we cannot certify as to the accuracy and completeness of the data supplied. The valuation is also based on benefit and contribution provisions as presented in this report. If you have reason to believe that the plan provisions are incorrectly described, that important plan provisions relevant to this valuation are not described, or that conditions have changed since the calculations were made, you should contact the authors of this actuarial report prior to relying on this information. The valuation is further based on the actuarial valuation assumptions, approved by the Board of Trustees, as presented in this report. We believe that these assumptions are appropriate and reasonable and also comply with the requirements of GASB Statement No. 67. We prepared this valuation in accordance with the requirements of this standard and in accordance with all applicable ASOPs.

9 Board of Trustees October 12, 2016 The latest assumptions were adopted for use with the December 31, 2015 actuarial valuation, based on the experience study prepared as of December 31, 2015 and adopted by the Board of Trustees on April 21, The economic assumptions with respect to investment yield, salary increase and inflation have been based upon a review of the existing portfolio structure as well as recent and anticipated experience. Where presented, references to funded ratio and unfunded accrued liability typically are measured on an actuarial value of assets basis. It should be noted that the same measurements using market value of assets would result in different funded ratios and unfunded accrued liabilities. Moreover, the funded ratio presented is appropriate for evaluating the need and level of future contributions but makes no assessment regarding the funded status of the plan if the plan were to settle (i.e. purchase annuities) for a portion or all of its liabilities. In various places in the report the results also show funded ratios and unfunded liabilities based upon varying sets of assumptions as well as market values of assets as that is required for certain disclosure information required per accounting rules or statutes. Where this has been done it has been clearly indicated. Future actuarial measurements may differ significantly from current measurements due to plan experience differing from that anticipated by the economic and demographic assumptions, increases or decreases expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions or applicable law. Because of limited scope, Buck performed no analysis of the potential range of such future differences, except for some limited analysis in financial projections or required disclosure information. The undersigned meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this report. This report has been prepared in accordance with all applicable Actuarial Standards of Practice, and we are available to answer questions about it. Respectfully submitted, Michael A. Ribble, FSA, EA, MAAA Principal, Consulting Actuary Larry Langer, ASA, EA, MAAA Principal, Consulting Actuary MAR:dlm M:\share\Clients\NC\VAL\2015 ROD.docx Page 2

10 Table of Contents Section 1: Summary of Principal Results... 1 Table 1 Summary of Principal Results... 1 Section 2: Membership Data... 3 Table 2 Active Member Data... 3 Table 3 Data for Members Currently Receiving Benefits... 3 Section 3: Asset Allocation... 4 Table 4 Allocation of Investments by Category... 4 Section 4: Comments on Valuation... 5 Section 5: Comments on Experience and Gains/Losses... 6 Table 5 Reconciliation of Change in Unfunded Actuarial Accured Liability Since the Prior Valuation... 6 Section 6: Accounting Information... 7 Table 6 Number of Active and Retired Participants... 7 Table 7 Schedule of Changes in Net Pension Liability (Asset)... 8 Table 8 Net Pension Liability (Asset)... 8 Table 9 Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate... 9 Table 10 Additional Information for GASB Statement No Appendices Appendix A Results of the Valuation Appendix B Development of Actuarial Value of Assets Appendix C Actuarial Assumptions and Methods Appendix D Summary of Main Benefit Provisions Appendix E GASB 67 Fiduciary Net Position Projection Appendix F Detailed Tabulations of the Data... 21

11 Section 1: Summary of Principal Results 1. This report, prepared as of December 31, 2015, presents the results of the actuarial valuation of the system. For convenience of reference, the principal results of the valuation and a comparison with the results of the previous valuation are summarized below. Table 1: Summary of Principal Results Valuation Results as of 12/31/ /31/2014 Active Members Number Reported Compensation $ 6,343,941 $ 5,842,163 Valuation Compensation** $ 6,586,044 $ 6,467,323 Retired Members and Survivors of Deceased Members Currently Receiving Benefits Number Annual Allowances $ 1,726,650 $ 1,707,552 Assets Actuarial Value (AVA) $ 48,302,937 $ 48,078,302 Market Value $ 46,975,034 $ 47,814,953 Actuarial Accrued Liability (AAL) $ 30,980,364 $ 23,745,153 Unfunded Accrued Liability (AAL-AVA) $ (17,322,573) $ (24,333,149) Funded Ratio (AVA/AAL)*** 155.9% 202.5% Contributions for Fiscal Year Ending 6/30/2018 6/30/2017 Actuarially Determined Employer Contribution: Normal Cost $ 914,794 $ 634,379 Accrued Liability (914,794) (634,379) Total $ 0 $ 0 Liquidation Period N/A* N/A* * If the actuarially determined employer contribution (ADEC) is based on 30 year amortization of the unfunded accrued liability, the ADEC is less than $0, which is not a permissible result. Therefore, the accrued liability contribution has been set such that the total employer ADEC equals $0. ** Reported compensation adjusted to reflect the assumed rate of pay increase prior to the valuation date. *** The Funded Ratio on a Market Value of Assets basis is 151.6% at December 31,

12 Section 1: Summary of Principal Results 2. Tables summarizing the membership of the system as of the valuation date are shown in Section An allocation of investments by category is shown in Section Comments on the valuation results are provided in Section Comments on the experience and actuarial gains/losses during the valuation year are provided in Section Accounting information to be disclosed in the financial statements of the System and the employer is provided in Section Appendix A of this report presents a summary of the results of the valuation, including present and prospective assets and liabilities of the Fund as of December 31, Appendix B of this report presents the development of the actuarial value of assets. 9. Appendix C of this report outlines the full set of actuarial assumptions and methods employed. 10. Appendix D gives a summary of the benefit and contribution provisions of the system. 11. Appendix E provides the projection of cash flows used to determine the discount rate under GASB Statement No Appendix F provides detailed tabulations of the membership of the system as of the valuation date. 2

13 Section 2: Membership Data Data regarding the membership of the system for use as a basis for the valuation were furnished by the System's office. The following tables summarize the membership of the system as of December 31, 2015 upon which the valuation was based. Table 2: Active Member Data Group Member Average Average Reported Count Age Service Compensation Males $ 1,947,716 Females ,396,225 Total $ 6,343,941 Table 3: Data for Members Currently Receiving Benefits Group Member Average Annual Retirement Count Age Allowances Males $ 234,000 Females ,492,650 Total $ 1,726,650 3

14 Section 3: Asset Allocation The following table shows an allocation of investments by category for the Register of Deeds Supplemental Pension Fund as of December 31, Table 4: Allocation of Investments by Category for the Register of Deeds Supplemental Pension Fund as of December 31, 2015 Cash and Receivables 0.4% Fixed Income (LTIF) 99.6% Public Equity 0.0% Other* 0.0% Total 100.0% * Real Estate, Alternatives, Inflation and Credit. 4

15 Section 4: Comments on Valuation Appendix A of this report presents a summary of the results of the valuation, including present and prospective assets and liabilities of the Fund as of December 31, The results of the valuation show that the Fund has total prospective liabilities of $37,402,358 of which $21,276,718 is for the prospective benefits payable on account of retired members currently receiving benefits and $16,125,640 is for the prospective benefits payable on account of present active members. Against these liabilities, the Fund has present assets of $48,302,937 leaving a balance of $(10,900,579) as the present value of contributions to be made in the future. The employer s contributions consist of normal contributions and accrued liability contributions. The valuation indicates that employer normal contributions totaling $914,794 are required to provide the benefits of the Fund for the average new member and include the amount required for administrative expenses. Prospective employer normal contributions have a present value of $6,421,994. When this amount is subtracted from $(10,900,579) which is the present value of total contributions, the result is an unfunded actuarial accrued liability of $(17,322,573). 5

16 Section 5: Comments on Experience and Gains/Losses The following table shows a detailed reconciliation of the change in unfunded accrued liability since the prior valuation. Table 5: Reconciliation of Change in Unfunded Accrued Liability Since the Prior Valuation (in millions) Unfunded Actuarial Accrued Liability (UAAL) as of 12/31/2014 $ (24.3) Impact of Experience Study 7.1 Normal Cost during Reduction due to Actual Contributions during 2015 (0.8) Interest on UAAL, Normal Cost, and Contributions (0.7) Asset (Gain)/Loss 0.3 Actuarial Accrued Liability (Gain)/Loss 0.2 Unfunded Actuarial Accrued Liability (UAAL) as of 12/31/2015 $ (17.3) Commentary: The changes in assumptions and methods from the experience study increased the unfunded actuarial accrued liability (UAAL) by $7.1 million at December 31,

17 Section 6: Accounting Information The section contains the accounting information for Governmental Accounting Standards Board (GASB) Statement No. 67 for fiscal year ending June 30, 2016 based on a valuation date of December 31, Please note GASB Statement No. 67 (Financial Reporting for Pension Plans) is applicable for fiscal years ending 2014 and later. The June 30, 2016 total pension liability presented in this section was determined by an actuarial valuation as of December 31, 2015, based on the assumptions, methods and plan provisions described in this report. The actuarial cost method used to develop the total pension liability is the Entry Age Normal Cost method, as required by GASB Statement No. 67. GASB Statement No. 67 set forth certain items of information to be disclosed in the financial statements of the Plan. The tables below provide a distribution of the number of employees by type of membership. Table 6: Number of Active and Retired Participants as of December 31, 2015 Group Number Retired members and survivors of deceased members currently receiving benefits 96 Terminated members and survivors of deceased members entitled to benefits but not yet receiving benefits 0 Active participants 100 Total 196 7

18 Section 6: Accounting Information GASB Statement No. 67 set forth certain items of information to be disclosed in the financial statements of the Plan. The tables below provide the schedule of changes in Net Pension Liability (Asset). Table 7: Schedule of Changes in Net Pension Liability (Asset) Calculation as of June 30, 2016 Total Pension Liability Service Cost $ 579,000 Interest 1,354,000 Changes of Benefit Terms 0 Difference between Expected and Actual Experience (45,000) Change of Assumptions 7,082,000 Benefit Payments, including Refund of Member Contributions (1,718,000) Net Change in Total Pension Liability $ 7,252,000 Total Pension Liability - Beginning of Year $ 23,820,000 Total Pension Liability - End of Year $ 31,072,000 Plan Fiduciary Net Position Employer Contributions $ 817,000 Member Contributions 0 Net Investment Income 3,722,000 Benefit Payments, including Refund of Member Contributions (1,718,000) Administrative Expenses (47,000) Other 0 Net Change in Fiduciary Net Position $ 2,774,000 Plan Fiduciary Net Position - Beginning of Year $ 46,994,000 Plan Fiduciary Net Position - End of Year $ 49,768,000 Table 8: Net Pension Liability (Asset) Calculation as of June 30, 2016 June 30, 2015 Total Pension Liability $ 31,072,000 $ 23,820,000 Plan Fiduciary Net Position 49,768,000 46,994,000 Net Pension Liability (Asset) $ (18,696,000) $ (23,174,000) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability % % 8

19 Section 6: Accounting Information The table below is the sensitivity of the net pension liability to changes in the discount rate. Table 9: Sensitivity of the Net Pension Liability (Asset) at June 30, 2016 to Changes in the Discount Rate 1% Decrease Current 1% Increase Discount Rate 2.75% 3.75% 4.75% Net Pension Liability (Asset) (15,075,000) (18,696,000) (21,738,000) The discount rate used to measure the total pension liability was 3.75%. The projection of cash flows used to determine the discount rate assumed that System contributions will continue to follow the current funding policy. Based on those assumptions, the System s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Please see Appendix E for additional detail. The table below provides the methods and assumptions used to calculate the actuarially determined contribution rate. Table 10: Additional Information for GASB Statement No. 67 Valuation Date 12/31/2015 Actuarial Cost Method Amortization Method Amortization Period Asset Valuation Method Actuarial Assumptions Entry Age Level dollar closed N/A* Investment Rate of Return** 3.75% Projected Salary Increases*** 3.50% % ** Includes Inflation of 3.00% *** Includes Inflation of and productivity of 3.50% Cost-of-living Adjustments Asset returns in excess of or less than the expected return on market value of assets reflected over a five-year period (not greater than 120% of market value and not less than 80% of market value) N/A * If the actuarially determined employer contribution (ADEC) is based on 30 year amortization of the unfunded accrued liability, the ADEC is less than $0, which is not a permissible result. Therefore, the accrued liability contribution has been set such that the total employer ADEC equals $0. 9

20 Appendix A: Results of the Valuation Valuation Results as of 12/31/ Present Value of Future Benefits a. Members Currently Receiving Benefits $ 21,276,718 b. Active Members 16,125,640 c. Total Actuarial Liabilities $ 37,402, Actuarial Value of Assets $ 48,302, Present Value of Future Contributions (1c) - (2) $ (10,900,579) 4. Present Value of Future Normal Contributions by Employers 6,421, Present Value of Unfunded Accrued Liability Contributions by Employers (3) - (4) $ (17,322,573) 10

21 Appendix B: Development of Actuarial Value of Assets Asset Data as of 12/31/2015 Beginning of Year Market Value of Assets $ 47,814,953 Contributions 810,996 Benefit Payments (1,766,187) Net Cash Flow (955,191) Expected Investment Return 1,775,151 Expected End of Year Market Value of Assets 48,634,913 End of Year Market Value of Assets 46,975,034 Excess of Market Value over Expected Market Value of Assets (1,659,879) 80% of 2015 Asset Gain/(Loss) (1,327,903) 60% of 2014 Asset Gain/(Loss) N/A 40% of 2013 Asset Gain/(Loss) N/A 20% of 2012 Asset Gain/(Loss) N/A Total Deferred Asset Gain/(Loss) (1,327,903) Preliminary End of Year Actuarial Value of Assets 48,302,937 Final End of Year Actuarial Value of Assets (not less than 80% and not greater than 120% of Market Value) 48,302,937 Estimated Net Investment Return on Actuarial Value 3.05% Estimated Net Investment Return on Market Value 0.24% Commentary: The actuarial value of assets smooths investment gains/losses resulting in less volatility in the employer contribution. The asset valuation method was changed during the experience study from a method that calculated the actuarial value of assets as 20% of the market value of assets plus 80% of the expected actuarial value of assets to a method that recognizes asset returns in excess of or less than the expected return on the market value of assets over a five-year period. The new asset valuation method adopted with the experience study assumptions re-set the actuarial value of assets to the market value of assets at December 31, 2014, effective for the December 31, 2015 valuation. Lower than expected market returns in 2015 resulted in an actuarial value of asset return for calendar year 2015 of 3.05% and an asset loss of $332,000 during The actuarial value of assets would have been $49,283,128 as of December 31, 2015 under the asset method used in the prior valuation. 11

22 Appendix C: Actuarial Assumptions and Methods Assumptions are based on the experience investigation prepared as of December 31, 2014 and adopted by the Board of Trustees on April 21, 2016 for use with the December 31, 2015 annual actuarial valuation. Interest Rate: 3.75% per annum, compounded annually. Inflation: Both general and wage inflation are assumed to be 3.00% per annum. Real Wage Growth: 0.50% per annum. Separations From Active Service: Representative values of the assumed rates of separation from active service are as follows: Annual Rate of Withdrawal Service Male Female Age Annual Rates of Withdrawal and Vesting* Base Mortality** Disability Male Female Male Female Male Female * These rates apply only after five years of membership in the system. ** Base mortality rates as of

23 Appendix C: Actuarial Assumptions and Methods Retirements: Representative values of the assumed rates of retirement from active service are as follows: Males Service Age Females Service Age Salary Increases: Representative values of the assumed annual rates of future salary increase are as follows: Service Annual Rate of Salary Increase %

24 Appendix C: Actuarial Assumptions and Methods Deaths After Retirement: Representative values of the assumed post-retirement mortality rates as of 2014 prior to any mortality improvements are as follows: Annual Rate of Death after Retirement Retirees (Healthy at Retirement) Retirees (Disabled at Retirement) Age Male Female Male Female Deaths After Retirement (Healthy Members at Retirement): Mortality rates are based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table. Rates for male members are multiplied by 115% for ages and by 135% for ages greater than 78. Rates for female members are multiplied by 79% for ages and by 116% for ages greater than 78. The RP-2014 annuitant tables have no rates prior to age 50. The RP Total Data Set Employee Mortality Table (with no adjustments) is used for ages less than 50. Death After Retirement (Disabled Members at Retirement): Mortality rates are based on the RP-2014 Total Data Set for Disabled Annuitants Mortality Table. Rates for male members are multiplied by 103% for all ages. Rates for female members are multiplied by 99% for all ages. Deaths Prior to Retirement: Mortality rates are based on the RP-2014 Total Data Set Employee Mortality Table. Mortality Projection (Non-Disabled): All mortality rates are projected from 2014 using generational improvement with Scale MP Timing of Assumptions: All withdrawals, deaths, disabilities, retirements and salary increases are assumed to occur July 1 of each year. Administrative Expenses: Assumed to be 0.15% of the market value of assets at the beginning of each calendar year. Reported Compensation: Calendar year compensation as furnished by the system s office. Valuation Compensation: Reported compensation adjusted to reflect the assumed rate of pay as of the valuation date. Actuarial Cost Method: Entry age normal cost method. 14

25 Appendix C: Actuarial Assumptions and Methods Asset Valuation Method: Actuarial value, as developed in Appendix B. The actuarial value of assets is based upon a smoothed market value method. Under this method, asset returns in excess of or less than the expected return on market value of assets will be reflected in the actuarial value of assets over a five-year period. The calculation of the Actuarial Value of Assets is based on the following formula: MV 80% x G/(L) 1 60% x G/(L) 2 40% x G/(L) 3 20% x G/(L) 4 MV = the market value of assets as of the valuation date G/(L) i = the asset gain or (loss) for the i-th year preceding the valuation date Changes Since Prior Valuation: The discount rate, the withdrawal rates, the disability rates, the retirement rates, the mortality assumption, the annual rate of salary increase, and the asset valuation method were changed based on the experience study prepared as of December 31, 2014 and adopted by the Board of Trustees on April 21,

26 Appendix D: Summary of Main Plan Provisions The Registers of Deeds Supplemental Pension Fund was established October 1, 1987 for all county registers of deeds who are retired from the Local Governmental Employees Retirement System or an equivalent locally sponsored plan. Benefits Service Retirement Allowance Conditions for Allowance Amount of Allowance Retirement from the Local Governmental Employees Retirement System or equivalent locally sponsored plan with 10 or more years of service as a register of deeds. Benefit payable for the life of the member only, equal to 75% of a registers of deeds equivalent annual salary immediately preceding retirement computed on the latest monthly base rate. Maximum benefit is $1,500 per month. Deferred Vested Retirement Allowance Conditions for Allowance Amount of Allowance Separation from service after completing at least 10 years of service as a register of deeds. Service Retirement Allowance described above commencing upon retirement with the Local Governmental Retirement System. Contributions Employer Contributions Employee Contributions Changes Since Prior Valuation 1.5% of the monthly receipts collected pursuant to Article 1 of Chapter 161 of the General Statutes. None. None. 16

27 Appendix E: GASB 67 Fiduciary Net Position Projection Table E-1: Projection of Fiduciary Net Positions (in thousands) Beginning Ending Calendar Fiduciary Member Employer Benefit Administrative Investment Fiduciary Year Position Contributions Contributions Payments Expenses Earnings Position 2016 $ 46,975 $ 0 $ 0 $ 1,810 $ 72 1,726 $ 46, , , ,720 46, , , ,713 46, , , ,705 46, , , ,695 45, , , ,684 45, , , ,670 45, , , ,655 44, , , ,638 44, , , ,619 43, , , ,597 43, , , ,575 42, , , ,550 41, , , ,526 41, , , ,500 40, , , ,476 39, , , ,451 39, , , ,426 38, , , ,402 37, , , ,380 37, , , ,359 36, , , ,340 36, , , ,322 35, , , ,308 35, , , ,294 34, , , ,283 34, , , ,276 34, , , ,270 34, , , ,268 34, , , ,267 34, , , ,269 34, , , ,276 34, , ,283 35, , ,296 35, , ,310 35, , ,327 36, , ,347 36, , ,372 37, , ,398 38, , ,428 39, , ,461 40, , ,495 41, , ,535 42, , ,575 43, , ,620 44, , ,667 45, , ,717 47, , ,770 48, , ,826 50, , ,886 52,030 17

28 Appendix E: GASB 67 Fiduciary Net Position Projection Table E-1: Projection of Fiduciary Net Positions (continued) (in thousands) Beginning Ending Calendar Fiduciary Member Employer Benefit Administrative Investment Fiduciary Year Position Contributions Contributions Payments Expenses Earnings Position 2066 $ 52,030 $ 0 $ 0 $ 145 $ 79 1,946 $ 53, , ,012 55, , ,080 57, , ,151 59, , ,225 61, , ,302 63, , ,383 65, , ,467 68, , ,553 70, , ,644 73, , ,738 75, , ,836 78, , ,937 81, , ,042 84, , ,151 87, , ,264 90, , ,381 93, , ,502 96, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,691 18

29 Appendix E: GASB 67 Fiduciary Net Position Projection Table E-2: Actuarial Present Value of Projected Benefit Payments (in thousands) Present Value of Benefit Payments Beginning Funded Unfunded Funded Unfunded Using Single Calendar Fiduciary Benefit Benefit Benefit Payments at Payments at Discount Rate of Year Position Payments Payments Payments 3.75% 2.71% 3.75% 2016 $ 46,975 $ 1,810 $ 1,810 $ 0 $ 1,777 $ 0 $ 1, ,819 1,838 1, , , ,629 1,848 1, , , ,423 1,875 1, , , ,182 1,909 1, , , ,897 1,961 1, , , ,550 1,989 1, , , ,161 2,022 2, , , ,725 2,057 2, , , ,238 2,095 2, , , ,694 2,146 2, , , ,078 2,153 2, , , ,434 2,144 2, , , ,775 2,135 2, , , ,102 2,112 2, , , ,427 2,103 2, , , ,738 2,065 2, , , ,063 2,026 2, , , ,403 1,973 1, ,773 1,913 1, ,182 1,847 1, ,637 1,779 1, ,142 1,712 1, ,697 1,636 1, ,314 1,560 1, ,994 1,486 1, ,738 1,407 1, ,554 1,333 1, ,438 1,254 1, ,399 1,181 1, ,432 1,105 1, ,543 1,030 1, , , , , , , , , , , , , , , , , , ,

30 Appendix E: GASB 67 Fiduciary Net Position Projection Table E-2: Actuarial Present Value of Projected Benefit Payments (continued) (in thousands) Present Value of Benefit Payments Beginning Funded Unfunded Funded Unfunded Using Single Calendar Fiduciary Benefit Benefit Benefit Payments at Payments at Discount Rate of Year Position Payments Payments Payments 3.75% 2.71% 3.75% 2066 $ 52,030 $ 145 $ 145 $ 0 $ 23 $ 0 $ , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

31 Appendix F: Detailed Tabulations of the Data Table F-1: The Number and Average Reported Compensation of Active Members Distributed by Age and Service as of December 31, 2015 Years of Service Age Under 1 1 to 4 5 to 9 10 to to to to to to & Up Total Under to to ,678 68, , to ,610 16,667 51,225 60, , to ,484 78,310 74,932 63, , to ,637 47,224 65,529 57,657 46,607 84, , to , ,569 61,728 57,425 53,856 82,061 74, , to ,097 52,936 53,287 64,853 51,297 60,195 78,965 51, , to ,445 82,888 71, ,212 65,739 43, , to ,062 61,259 50,844 96,410 68,950 62, , , & Up , ,197 61,442 Total ,610 60,761 60,539 67,261 67,519 55,335 70,391 66,317 55,959 69,197 63,440 21

32 Appendix F: Detailed Tabulations of the Data Table F-2: The Number and Annual Retirement Allowances of Retired Members and Survivors of Deceased Members Distributed by Age as of December 31, 2015 Men Wom en Age Number Allow ances Number Allow ances 52 - $ - 1 $ 18, , , , , , , , $ 18, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 22

33 Appendix F: Detailed Tabulations of the Data Table F-2: The Number and Annual Retirement Allowances of Retired Members and Survivors of Deceased Members Distributed by Age as of December 31, 2015 Men Wom en Age Number Allow ances Number Allow ances 86 - $ - 2 $ 36, $ , $ , $ 36, $ , $ ,000 Total 13 $ 234, $ 1,492,650 23